Connect with us

Business

US manufacturing output rises solidly despite semiconductor shortage

Avatar

Published

on


FILE PHOTO: An employee works at the Kirsh Foundry in Beaver Dam, Wisconsin, U.S. April 12, 2018. Photo taken April 12, 2018. REUTERS / Timothy Aeppel

WASHINGTON (Reuters) – Production at U.S. factories rose more than expected in January, even as a semiconductor shortage weighed on motor vehicle production, indicating the resilience of the recovery in the manufacturing sector.

Manufacturing output rose 1.0% last month after gaining 0.9% in December, the Federal Reserve said on Wednesday. It was the ninth consecutive monthly advance in factory production.

Economists polled by Reuters were forecasting a 0.7% increase in manufacturing output in January. The manufacturing sector, which accounts for 11.9% of the U.S. economy, grew as the pandemic left Americans rooted in their homes, shifting demand towards household goods from services like air travel and lodging in the hotel.

Manufacturing dynamics could slow in the spring as vaccine distribution reaches large swathes of the population, helping to slow the spread of the virus. This could trigger pent-up demand for travel.

Nonetheless, production at factories will be supported by low customer inventories, as well as meager inventories at manufacturers. A survey conducted this month showed a drop in manufacturing sentiment in January.

The Fed report showed that production of motor vehicles and parts fell 0.7% in January. Production in auto factories has been hampered by a shortage of semiconductors. Production of motor vehicles fell 0.2% in December. Excluding autos, manufacturing output increased 1.0%.

Strong manufacturing output combined with a 2.3% jump in the mining sector pushed industrial production up 0.9% in January. This follows a 1.3% increase in December. Industrial production remains below its pre-pandemic level. The output of utilities fell 1.2%.

The capacity utilization of the manufacturing sector, a measure of how well businesses are making full use of their resources, increased 0.7 percentage points to 74.6% in January. Overall capacity use in the industrial sector increased 0.7 percentage points to 75.6%. It is 4.0 percentage points below its 1972-2019 average.

Fed officials tend to look at measures of capacity utilization to indicate how sluggish the economy remains to what extent growth has room before it turns inflationary.

Reporting by Lucia Mutikani; Edited by Chizu Nomiyama

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos



picture credit

ExBUlletin

to request, modification Contact us at Here or [email protected]